Hydro has signed a letter of intent (LOI) with Nemak to develop low-carbon aluminum cast products for the automotive industry. The aim is to accelerate decarbonization efforts and support car manufacturers in reaching their sustainability goals.
“Expectations from society and customers towards business and industry to drive change are rising rapidly,” said Hanne Simensen, executive vice president for Hydro Aluminium Metal. “Our strengthened collaboration with Nemak means we will develop more circular products and work towards pushing carbon footprint reduction to the limit. This can make a difference for automotive companies looking to decarbonize their supply chains and meet ambitious sustainability goals.”
Nemak is a leading provider of cast aluminum products for the global automotive industry, providing innovative lightweighting solutions for e-mobility, vehicle structures and chassis, and internal combustion engine powertrain applications. For more than 40 years, there has been continuous growth in the use of aluminum in the automotive industry — largely due to its light weight, alloy strength, and corrosion resistance, as well as its processing possibilities.
“As the automotive industry accelerates toward sustainability, Nemak is at the forefront of delivering lightweighting solutions,” noted Armando Tamez, chief executive officer, Nemak. “Aluminum is one of the most effective ways to improve the energy efficiency of electric and hybrid vehicles, and through our collaboration with Hydro, we are enhancing our lightweighting solutions to drive sustainable mobility forward.”
Hydro and Nemak have collaborated for more than two decades to deliver high-quality foundry alloy products to car manufacturers. Hydro currently supplies Nemak with Hydro REDUXA primary foundry alloy, a premium product with an estimated carbon footprint below 4.0 kg CO2/kg Al, which is 25% less than the global average. Alumetal, the Polish recycling company that has been fully owned by Hydro since 2023, also supplies foundry alloy products to Nemak.
Under the new LOI, the two companies will work to utilize the full potential of aluminum as a low-carbon solution in cast components, such as engine and structural components for vehicles. The decarbonization of these foundry products will be accomplished by using more post-consumer scrap. The long-term ambition is to develop foundry alloy aluminum solutions qualified for automotive applications with a CO2 footprint below 3.0 kg CO2 per kilo aluminum, which would reduce the CO2 footprint by a further 25%. The LOI also includes cooperation on research and development to bring forth the next generation of automotive alloys used in cast components.
Hydro’s integrated value chain, which spans from bauxite mining and alumina refining to energy generation, smelting, extrusion, and recycling, allows the company to offer low-carbon aluminum products with traceability and transparency in every step from mine to metal. This is key to document emission cuts and reach Hydro’s target of 30% reduction in carbon emissions by 2030, driven largely by fuel switch and boiler electrification using renewable energy at the Alunorte alumina refinery in Brazil.
Both Hydro and Nemak share the decarbonization target of making net-zero products by 2050 or earlier.